Business Terms and Jargon Explained

What is Collateralised Transactions

A transaction for which the borrower provides assets (physical or financial) as security against part, or the whole value, of a loan. The assets would become the property of the lender should the borrower fail to repay the loan; for example a mortgage, in which the property provides the collateral.

Crown Copyright. Material taken from HM-Treasury. Reproduced under the terms and conditions of the Click-Use Licence.

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Term created / updated 2007-05-08 13:25:56

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